On Monday morning, the USD/JPY dropped below the support of the 108.63 level, which kept the rate up during the last week. This resulted in a sharp move down that by the middle of Monday's trading reached the 108.00 mark.
Economic Calendar
There are no notable events scheduled for the week that could notably impact the USD/JPY currency exchange rate.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term daily review
In the near term future, the rate was expected to consolidate by retracing back up to the resistance levels near 108.35 or trading sideways above the 108.00 mark.On the other hand, a potential decline could look for support in the weekly S2 simple pivot point at 107.88. If the rate passes the pivot point, the USD/JPY could find support in the lower trend line of the channel down pattern that captures the rate's April decline.
Hourly Chart
On the daily candle chart, another support level has been passed. Next possible stop could occur at the 55-day simple moving average at the 107.75 mark.
Daily chart
On Friday, traders on the Swiss Foreign Exchange were 62% short on USD/JPY. On Monday, the sentiment was 61% short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 68% to buy.
The orders were most likely take profits of the short positions and buy to open long position orders.